Shanghai – Office rents rebound
Shanghai’s grade A office rental rebounded after three consecutive quarters of decline. The average rent increased 1.5% quarter-on-quarter (q-o-q) to RMB 8.7 (US$1.4) per sq m per day thanks to limited availability in Pudong, which drove up the citywide overall average. In fact, when looking solely at the Puxi market, the average rent actually remained stable with the last quarter.
Nanjing – Retail rents increase
The average prime retail rent in the central retail hubs increased 2.9% q-o-q as the prime hub of Xinjiekou remained strong. The occupancy rate decreased 0.4% q-o-q to 92.9% because of increased stock from newly completed premises and existing shopping centres undergoing tenant readjustment. As retail sales volume continues to increase, prime retail premises are continuously adjusting themselves to increase their market share. Meanwhile, we expect the average rent and occupancy rate to improve further.
Hangzhou – Office availability ratio drops
Given the significant increase in net absorption and no new supply, the overall availability ratio for Hangzhou dropped 4.8 percentage points to 18.7% in Q4 2013 after four consecutive quarters of increase. Noticeably, a number of companies have relocated to or set up new offices in Qianjiang New City and its availability ratio dropped 11 percentage points from 40.0% to 29.1%. Strong take-up in Qianjiang New City was, therefore, the main force behind the drop in the city’s availability ratio.
Source : DTZ (Groupe UGL)